Dave, you are on the right track. Some theory:
You're dealing with the Ignition terminal for your regulator. With the key on, 12 volts goes through this wire and the battery warning light. The regulator grounds the other end of this wire when the alternator is not excited (which makes your battery light illuminate). Once the alternator excites, it removes the ground from this circuit, which allows the battery light to go out.
If the alt does not see this ignition wire go hot, the alt will not excite. As you noted, that's likely your issue.
The resistor you see in parallel with the battery bulb is a safeguard for the ignition circuit (so a burned out bulb doesnt leave you stranded with no alternator charging).
Once you connect this wiring back up Dave, you should be ok. One thing: ensure that you keep bulbs and the resistor in the wiring. Otherwise, you can see that you would have 12 volts grounding in the regulator. Not good.
Good luck bud.